Stock Market & Financial Investment News

Microsoft volatility low into Q2 results and new product sales outlook Microsoft February call option implied volatility is at 21, March, April and July is at 20; compared to its 26-week average of 23 according to Track Data, suggesting decreasing price movement into the expected release of Q2 results on January 24.

Microsoft technical notes before earnings, levels to watchOn a long-term basis the stock has a potential double top pattern that would be confirmed on a breakdown below $40. In a shorter time frame the stock is range-bound between $45 at the low and $50 at the high. If the news is bearish, a breakdown below $45 would put the shares on a path for a test at that $40 support. A breakdown below $40 would see next support at $39.27 and then at $38.56. The downside target from the double top would be to the $30 area over time. If the news is a bullish surprise, a breakout above $50 would see next resistance at $53.13 and then at $55. Both are levels not seen since the year 2000.